To make things worse, Elon Musk is due to make the first interest payment on the $13 billion in debt he took on to buy Twitter as early as the end of January.
Twitter’s revenue on Tuesday was down 40 percent year over year as the company continues its free-fall three months into Elon Musk’s takeover, according to Zoë Schiffer, a reporter for Platformer. Musk may also be staring down the barrel of a massive interest payment on the $13 billion in debt he took on to buy the struggling platform, which could come due as soon as the end of January, according to the Financial Times. Twitter, as the debt’s holder, is obligated to pay back around $1.5 billion a year in interest payments, according to the newspaper. Should the company miss the deadline, and if Musk declines to sell off more of his Tesla shares to finance the repayment, its management could file for bankruptcy to kickstart an expensive and likely painful debt-restructuring process. As one employee told Schiffer and two other reporters for a feature published Tuesday in New York magazine: “Place is done for.” The foundering social media company lost $221 million in 2021, its last year of full reporting.
Tiny scoop: We learned today that Twitter’s revenue is down 40 percent year over year (& Musk’s first giant interest payment on the company is due at the end of the month): https://t.co/IH7lJiQ0Dw
